Adam Wheeler

Credit Market and Private Debt Predictions for 2018

James Mackintosh, John Francis Barry, Maria Cantillon, Nigel Walder, Adam Wheeler, Alex Vascovich

Leading private credit managers and investors convened to analyze a market characterized by compressed Eurozone yields, a structural exit of over-levered European banks from the mid-market, and a shift toward "covenant-light" products despite warnings about long-term insolvency risks. Panelists highlighted the $5.3 trillion US middle market opportunity and the strategic pivot toward SaaS while maintaining rigorous discipline against regulatory fragmentation and political uncertainties like Brexit. Looking ahead, the discussion underscored an expectation of sustained private debt growth driven by institutional yield hunger, even as experts cautioned that inexperienced entrants lacking robust downside protection could face severe losses when the credit cycle eventually turns.